Obama’s Deficit Disorder

The Obama administration’s attempt to revive the economy by increased government spending has resulted in the federal deficit topping the $1 trillion level for the first time.

According to the Treasury Department the June deficit was $94.3 billion pushing the current year total to $1.09 trillion with 3 months remaining in the budget year. The administration is expecting the total deficit to come in at $1.84 trillion but that may be optimistic based on how the economy is performing.

And so far the economy isn’t cooperating. The White House pushed for and received a $787 billion stimulus program and the money has been trickling into the economy at such a slow pace that not only has the unemployment rate risen to 26-year high but there is now talk of a second stimulus package.

Obama and the Democrats seem to be wedded to the idea that increased government spending is the only way out of this recession. But the only thing we have to show for all the taxpayer money being spent is a record deficit that is expected to grow larger, possibly to $2 trillion before it heads lower.

Add to that the fact that overseas investors especially from China who have been large buyers of U.S. government debt are now getting nervous that their once safe investments may not be so safe after all as the deficit soars.

Apparently the administration isn’t too concerned about the long term damage that their policies are inflicting on our economy. Maybe, just maybe some of the government spending will actually spur some parts of the economy back to life, but at what cost? Our national debt is already at $11.5 trillion and growing fast. As interest rates will likely rise when the economy does eventually recover the cost of servicing that debt will soar further crippling the U.S. A vicious cycle to be sure.

Instead of the real hope and change that the Obama promised he would deliver if elected we are getting more of the same tax and spend policies that Democrats love.